Portal for Appraisal Licensing Act of 2025

Bill Number: H.R. 5520
Origin Chamber: House
Congress: 119th Congress, Session 1
Policy Area: Finance and Financial Sector
Status: Introduced
Latest Action: 2025-09-19: Referred to the House Committee on Financial Services.
Last Updated: 2026-05-30T08:05:59Z

AI-Generated Summary

Purpose

The Portal for Appraisal Licensing Act of 2025 aims to create a centralized, cloud-based online system (called the "Portal") to streamline the licensing and certification process for real estate appraisers and the registration of appraisal management companies (AMCs, which are firms that manage networks of appraisers). This system would make it easier to submit applications, track requirements like education and background checks, and connect federal oversight with state agencies, ultimately improving efficiency in the appraisal industry regulated under federal banking laws.

Key Provisions

Establishment of the Portal: The Appraisal Subcommittee (ASC, a federal body that oversees state appraiser licensing programs) must build and maintain the Portal as a central hub for:
Submitting and renewing licenses, certifications, and AMC registrations.
Sharing data with state appraiser licensing agencies, including details on education completed, work experience logs, exam results, and background checks.
Handling fee payments and issuing "letters of good standing" (official confirmations of valid credentials) to states.
The Portal can build on an existing digital platform if one is available.
Background Checks:
Provides state regulators access to federal criminal history records through the U.S. Attorney General and FBI.
The ASC acts as an intermediary ("channeling agent") to simplify requests between states, the Department of Justice, and the FBI.
Appraisers and others needing checks submit fingerprints via the Portal; results from these checks meet federal regulatory requirements for oversight.
Education and Identification Tracking:
States can list approved education courses in the Portal; education providers and states report who has completed them.
Uses unique identifiers (like digital IDs) for appraisers and AMCs to track records securely.
State Autonomy and Fees:
States retain full authority to approve or deny applications and renewals.
State-specific fees and details are still collected from users but routed through the Portal for simpler processing.
Advisory Committee: The ASC must form a group with representatives from appraisers, AMCs, lenders, industry associations, and state agencies to advise on Portal design and implementation.
Funding:
User fees charged to Portal participants, set to cover only the costs of building and running it (aiming for "revenue neutral" operations).
Grants provided to states to help connect their systems to the Portal.

Significant Changes to Existing Law

This bill amends Section 1103 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA, a law that sets standards for appraiser qualifications in federally related real estate transactions). Key changes include:

Expanding the ASC's duties by adding a new requirement (paragraph 7 in subsection (a)) to create and maintain the Portal.
Inserting a new subsection (c) that details the Portal's features, background check processes, and funding mechanisms—none of which existed before.
These updates build on FIRREA's framework for uniform appraiser standards without altering core state licensing powers.

Potential Impacts

On Government Agencies: The ASC gains new responsibilities for technology development and data management, potentially reducing administrative burdens through centralization. State agencies benefit from easier access to information and grants for system integration, but may need to update their processes.
On Citizens (Appraisers and Related Professionals): Appraisers and AMC staff face a more streamlined application process with one-stop submission of documents, education proof, and fees, which could speed up licensing and reduce paperwork. However, they must submit fingerprints for background checks if required by their state.
On International Relations: No direct impacts, as the bill focuses on domestic U.S. real estate appraisal regulation.
Overall, it could enhance the accuracy and speed of credential verification, reducing fraud risks in mortgage lending and real estate transactions that rely on appraisals.

Main Stakeholders Affected

Appraisers and AMCs: Primary users who submit applications, pay fees, and provide fingerprints; they gain efficiency but may incur small user fees.
State Appraiser Certifying and Licensing Agencies: Connect to the Portal for data access and receive grants; they retain decision-making power but must integrate systems.
Appraisal Subcommittee (ASC): Oversees Portal creation, maintenance, and an advisory committee; handles funding and FBI coordination.
Federal Agencies: U.S. Attorney General and FBI provide criminal history access; federal financial regulators (e.g., those overseeing banks) benefit from standardized background checks.
Lenders and Financial Institutions: Indirectly affected through more reliable appraiser credentials, improving trust in mortgage appraisals.
Education Providers: Can submit course completion data to the Portal, simplifying reporting to states.

Notable Legal, Constitutional, or Political Implications

Legal: Strengthens federal oversight of state-regulated professions under FIRREA by mandating data sharing and background checks, while explicitly preserving states' rights to independent decision-making—this balances federal uniformity with state sovereignty. The use of FBI records for non-law enforcement purposes (appraisal licensing) is authorized but limited to state-required checks, avoiding broader privacy concerns.
Constitutional: No major issues; it respects the 10th Amendment by not overriding state authority and uses existing federal powers over interstate banking and commerce. Fingerprint submission raises minor privacy considerations, but it's voluntary (tied to state laws) and compliant with federal background check statutes.
Political: Bipartisan sponsorship (from Republicans and Democrats) suggests broad support for modernizing outdated processes in the housing finance sector. It could face debate over costs or data security, but the revenue-neutral fees and state grants aim to minimize fiscal burdens. Implementation might highlight tensions between federal efficiency goals and state autonomy in professional licensing.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Loudermilk, Barry [R-GA-11]

Cosponsors (11)

Rep. Meuser, Daniel [R-PA-9], Rep. Fitzgerald, Scott [R-WI-5], Rep. Lee, Susie [D-NV-3], Rep. Neguse, Joe [D-CO-2], Rep. Pettersen, Brittany [D-CO-7], Rep. Kustoff, David [R-TN-8], Rep. Vindman, Eugene Simon [D-VA-7], Rep. Lawler, Michael [R-NY-17], Rep. Timmons, William R. [R-SC-4], Rep. Kean, Thomas H. [R-NJ-7], Rep. Fitzpatrick, Brian K. [R-PA-1]

Recent Actions

2025-09-19: Referred to the House Committee on Financial Services.
2025-09-19: Introduced in House
2025-09-19: Introduced in House

Bill Versions

Portal for Appraisal Licensing Act of 2025 — issued 2025-09-19 — PDF (7 pages)